[comp.dcom.telecom] Hayes Patents

"Benson I. Margulies" <benson@odi.com> (05/19/91)

It amazes me how contributors to this list feel compelled to bewail
the disasterous and "monopolistic" implications of the Hayes patent
from a position of apparent total ignorance of patent law and
practice.

People seem to think that having to pay a license fee is the end of
the world. Guess what? Companies pay each other licence fees on
patents all the time, on all kinds of "trivial" and "obvious" items.
It dosen't seem to stifle competition.

If the holder of the patent charges a moderate fee, then most would-be
users will find it cheaper and safer to pay up then to litigate. If
they change an extortionate fee, they provide an incentive to hire
bigger and better lawyers, and risk losing their patent altogether.
So the system is self-corrective -- patents that represent really big
novelties command high royalties, and patents that are more minor
command low ones. Inventors are rewarded for their efforts, and things
all come out in the wash.

An important difference from apple/lotus is that those are based on
copyright, not patent. A real expert can undoubtedly tell the list why
copyrights do not lend themselves as well to this self-adjustment
process.

I can also provide two alternatives to the Hayes method:

1) a break signal. 

2) send a sequence and THEN pause, rather than the other way around.

No one asked all these other companies to choose the AT set as the
"standard." There's no ANSI spec that I know of. The whole idea of
patents is to guarantee that inventors of useful novelties get some
compensation from other users. If Hayes went and invented a command
set that is so widely admired as to be universally copied, I think
they deserve a reasonable royalty on every modem, be it on the escape
sequence, AT, or whatever.